Real Estate- Florida’s Condominium Conundrum
Buildings that are well-managed and financially prepared are likely to hold their value.
The revisions to Statute 718 that became effective in mid 2025 will impact the value of all habitable condominiums of three stories or more in the state of Florida. The major revisions of statute 718 are HB 913 and SB 1742. Florida House Bill 913 requires a Structural Integrity Reserve Study (SIRS) for properties reaching 30 years of age and every 10 years thereafter. Properties close to salt water may be required to obtain a SIRS report after 25 years. The amendments require changes in policies and procedures for condominium association management. In addition, operating budgets must be revised in compliance with the SIRS study. The SIRS report is done in two phases, first a visual inspection by a licensed engineer looking for signs of deterioration. Phase 2 follows if phase 1 identifies issues. In simple terms: a condo’s value will increasingly depend on whether the building is meeting the requirements in the revisions to Statute 718.
The following are guidelines for condominium owners and prospective condominium buyers and tenants:
You can find information online to analyse the status of all Florida condominiums over two stories. https://www2.myfloridalicense.com/condos-timeshares-mobile-homes/condominiums-and-sirs-reporting This link contains info on the filing of the SIRS report. Search for Structural Integrity Reserve Study (SIRS) report Florida, and you can find the link. Only complete submissions of the SIRS Reporting Form are displayed in the databases. The database is split into condominiums and cooperatives that submitted before July 2025 and condominiums and cooperatives that submitted after July 2025.
Read and understand the issues in the current legislation, Florida House Bill 913 and Florida Senate Bill 1742, you can find more information and can file complaints here.
Research FEMA maps based on location using this link. This will assist in determining the availability and cost of insurance.
Owners should attend scheduled condominium meetings and learn to understand the itemized operating budget. Prospective buyers with executed contracts will be provided financial information by property managers. They can also speak with neighbours and residents and ask about any litigation from owners or contractors. Management will provide minutes from previous association meetings that will clarify previous issues.
Additional information can be obtained by speaking with local residents, real estate professionals and other individuals that live in the neighbourhood. The information obtained from locals in an informal situation may be the best information to understand current issues relating to the property.
A real estate appraisal or information about sales over the past year of similar condominiums may not be relevant because the appraisal may not have taken into consideration the new revisions to Statute 718. Hopefully in the near future, there will be a way to rank the status of condominium approvals, matching the state requirements that will ease the process of underwriting condominiums to be sold.
In the past, buyers typically reviewed recent sales and contacted a qualified real estate salesperson to determine value. That premise is no longer valid. The requirements under the amendments for each condominium property has implications for both condominium owners and prospective buyers. Both will be required to do research in order to understand if a specific development is in compliance with the regulations.
Buildings that are well-managed and financially prepared are likely to hold their value. Those that are not may face rising costs, special assessments, and lower buyer demand.
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